The tariff imposed on Kenya’s avocado exports to China has been lashed from 30% to 7%, a move that is likely to see farmers hugely benefit from the trade.
The move comes a huge relief for small scale farmers, who had initially been sidelined mainly with the regulations China put on the avocado exports. Although the orders are still in place, Trade Principal Secretary, Chris Kiptoo, says talks are underway to relax them.
After the exportation deal was signed in April last year, China demanded that the product be peeled and froze to -30 degrees, and to a further -18 degrees while in transit to the destination. This was so as to curb the fruit flies pests.
However, by October 2019, only one firm out of over 100 had met the requirements. This edged out small scale farmers who did not have the capacity to invest in cold rooms.
With the tariff slash, therefore, small scale farmers will now take advantage of the financial relief.
The government signed the deal with China, expecting the Asian nation to absorb more than 40% of Kenya’s avocado produce at its peak. The government also wanted to balance the trade between her and China, which stands at 2.5% against 97.5%.